Has anyone kept your home in a CH7?

[Phx]

Hello,

(Currently in a 13 but looking to convert to a 7)

I am just curious if anyone has filed a 7 and actually kept their home? Everything I read, in this forum, states that they have surrendered the house. I am current on my first morgage, but not my second, but would like to keep my home. Has anyone done this in a 7?

[wantout]

I kept my house. My first would only do a ride thru, they said as long as I make the payments everything goes on like it has. Thye also are reporting on my credit as current with payments.

[Phx]

Wantout - Thanks for the response. What is a ride thru? Do you have a second mortgage?

[wantout]

A ride thru is where the mortgage is included in the BK, but the bank lets you keep living in the house as long as you continue to make the payments.

Yes I have a second, I had to reaffirm the second, they stated to me they would foreclose on the loan if I did not so I did. Guess I coud have called thier bluff, but I decided not to take the chance, I can still sell and pay off both notes and have some money left over if needed.

[Phx]

Are you activy paying on the 2nd? Or do they just retain the lien on the home? It was my understanding you are relieved of the debt responsibility(through Ch 7),however, the lien remains on the home. Sorry for so many questions, but it sounds like you went through my situation. Thanks!

Not sure if this matters but there is no equity after the 1st mortgage.

[justbroke]

(Currently in a 13 but looking to convert to a 7)

I'm a converted Chapter 13 debtor.

I am just curious if anyone has filed a 7 and actually kept their home? Everything I read, in this forum, states that they have surrendered the house. I am current on my first morgage, but not my second, but would like to keep my home. Has anyone done this in a 7?

This totally depends on what you're doing with the 2nd mortgage! If you are not paying the 2nd, and don't want to pay, the 2nd could actually foreclose if it was worth their time. Generally speaking, with home prices where they are, the 2nd lienholders aren't going to foreclosure these days, but as your house appreciates, it becomes more likely to be foreclosed upon.

I would never ever reaffirm a second unless the home was worth more than all encumbrances. If your home is underwater by 10% or more, you really need to make some financial calculations on whether it is worth keeping. I would never reaffirm a second on an underwater house, even if threatened. I'd say... "come and get it if you dare".

Conversion is a strategy, especially when you were stripping a second, and/or are underwater on the property. I converted, and I am riding-through and not paying the second. We'll just have to see how that goes. It has been almost 3 years since filing.

[wantout]

My house currently has about 30% in equity over both mortgages, so yes I want to keep it. I bought a house I could afford, it was other things in life that bit me on the ass and forced me into BK.

[justbroke]

My house currently has about 30% in equity over both mortgages, so yes I want to keep it. I bought a house I could afford, it was other things in life that bit me on the ass and forced me into BK.

While you are technically required to reaffirm, most banks don't care so long as you are paying on time. With the equity above all the mortgages, the bank would probably not care if you did a ride-through. If you want to reaffirm, I really don't see any issues since you state that the home is really worth 30% more than you owe on it. We get concerned when the home is underwater and a person wants to reaffirm.

[keepsmiling]

With that much equity you may have an issue with a 7, depending on your state exemptions and what your home appraises at.

[justbroke]

With that much equity you may have an issue with a 7, depending on your state exemptions and what your home appraises at.

In Florida, it's no problem -- unlimited homestead exemption. However, I don't know where the poster is from, so... you make a great point.

[wantout]

My state has home stead exemptions of up to $125,000, value on my place is less than that, also I have been discharged for a year.

[KSL]

My attorney advised me to to reaffirm my second mortgage too. He said I would have to in order to keep my home.

A post further up makes it sound optional. It is too late for me now though, but interesting.

[justbroke]

Not reaffirming a second is done when you are prepared to leave the home. I would never suggest that someone reaffirm a home that is more than 10% underwater... especially if they're just trying to keep the home. It should always come down to a sound financial decision. Many people come on this board a year after reaffirming and wishing that they never did.

[KSL]

Not reaffirming a second is done when you are prepared to leave the home. I would never suggest that someone reaffirm a home that is more than 10% underwater... especially if they're just trying to keep the home. It should always come down to a sound financial decision. Many people come on this board a year after reaffirming and wishing that they never did.

Well... when the appraisal was done on my home it came in at just a few thousand dollars more than what I owed on it. I just wish I could refinance my first and second mortgage together into one, but I don't think I can refinance yet, too soon after bankruptcy. I think I have to wait at least three years for refinance or even a new mortgage as far as buying a different home.

[nichole04]

I was current on all of my mortgages when I filed chapter 7. My attorney said that I needed to be current on all. We checked reaffirm but none of my mortgage servicers sent the papers to sign so we did not reaffirm anything. I stopped paying my 2nd mortgages after I filed and then settled with them to release the liens. We were discharged in July and are still living in the house.